RESULTS PRESENTATION Piet Mouton PSG Group CEO April 2019 1 Our - PowerPoint PPT Presentation

28 FEB 2019 RESULTS PRESENTATION Piet Mouton PSG Group CEO April 2019 1

Our investment philosophy – early-stage investing New investments should be in large markets: › High-growth companies should have stronger balance sheets and › Banking make limited use of debt › Energy › Management cannot simultaneously focus on high-growth › Education (J-curve) investment opportunities and servicing debt: If successful, the returns should be • Loss of focus and conservatism substantial › Window to capture the market Large inefficient incumbents: › “Free” services (Education and Energy) Fragmented: › IFAs › Retirement villages Best management teams: › Think differently Best operating models: › Service › Pricing › Experience 2

PSG Group Limited: Group Structure Market Cap*: R58bn net of treasury shares 30.7% 55.4% 60.6% 49.0% 43.8% 98.1% PSG has been good at early-stage investments - building businesses PSG Alpha used to find new growth investments *Market capitalisation as at 12 April 2019 3

Sum-of-the-parts (SOTP) Feb 14 Feb 18 Feb 19 Five-year SOTP 28 FEB 2014 Asset/(liability) Rm Rm Rm CAGR^^ Dipeo/ Other assets Capitec* 5,989 29,540 46,351 48% Thembeka 8% 6% PSG Konsult* 4,004 7,048 8,700 16% Capitec 30% Curro* (Incl. Stadio until unbundling in Oct 2017) 4,660 7,987 5,714 (2%) Zeder 8% PSG Alpha (Incl. Stadio since unbundling in Oct 2017) 949 5,201 4,712 21% Stadio* 2,379 1,253 PSG Alpha 5% Other investments** 949 2,822 3,459 Zeder* 1,698 4,823 3,166 1% Dipeo (prev. Thembeka) ** 1,243 535 - PSG Konsult Curro Other assets 1,505 2,603 1,702 20% 23% Cash^ 180 1,000 323 Pref investments and loans receivable^ 722 1,558 1,297 SOTP 28 FEB 2019 PSG Corporate ++ 383 - - Zeder PSG Alpha Other^ 220 45 82 Other assets 7% 5% 2% Total assets 20,048 57,737 70,345 Curro Perpetual pref funding* (1,393) (1,278) (1,367) 8% Other debt^ (615) (949) (1,020) Total SOTP value 18,040 55,510 67,958 PSG Konsult Shares in issue (net of treasury shares) (m) 189.9 217.5 218.2 12% Capitec SOTP value per share (R) 95.01 255.17 311.45 27% 66% Share price (R) 89.02 217.50 259.78 24% * Listed on the JSE Ltd ** SOTP value ++ Valuation ^ Carrying value ^^ Based on share price/SOTP value per share as at 28 Feb 2019 Note : PSG's live SOTP containing further information is available at www.psggroup.co.za 4

PSG Group share price vs SOTP value per share Discount Latest discount ~17% 12-month average discount ~16% Liquidity (per annum) Feb 2019 47% Feb 2018 68% Feb 2017 30% Feb 2016 47% Feb 2015 17% Feb 2014 10% Feb 2013 13% Feb 2012 8% 5

Gearing and interest cover – 28 Feb 2019 Gearing* (based on SOTP value) Gearing* (based on consolidated B/S NAV) Interest cover** 13.2% 3.5% 4.8x *Incl. perpetual pref funding at MV **Calculated using free cash flow › PSG Group is conservatively geared › Has significant capacity for further debt if needed 6

Recurring earnings Feb 17 Feb 18 Change Feb 19 Rm Rm % Rm Capitec 1,164 1,369 1,625 PSG Konsult 300 348 361 Curro (incl. Stadio until unbundling in Oct 2017) 96 110 137 PSG Alpha (incl. Stadio since unbundling in Oct 2017) 133 172 216 Zeder 275 205 207 Dipeo (20) (56) (29) PSG Corporate 29 (7) (45) Other (mainly pref div income) 112 136 84 Recurring earnings before funding 2,089 2,277 12% 2,556 Funding (net of interest income) (104) (135) (199) Recurring earnings 1,985 2,142 10% 2,357 7

Earnings and per-share data Feb 17 Feb 18 Change Feb 19 Rm Rm Rm % Recurring earnings 1,985 2,142 10% 2,357 Non-recurring items 160 (186) (163) Headline earnings 2,145 1,956 12% 2,194 Non-headline items 17 (42) (268) Attributable earnings 2,162 1,914 1% 1,926 Earnings per share (R) - Recurring 9.27 9.94 9% 10.86 - Headline 10.01 9.08 11% 10.11 - Attributable 10.09 8.88 - 8.88 Dividend per share (R) 3.75 4.15 10% 4.56 › Non-recurring items of R163m relate mainly to the unrealised fair value losses that Dipeo incurred on its investment portfolio (due to the decline in the Pioneer Foods share price in particular). › Non- headline items relate mainly to Zeder’s impairment of its investment in Pioneer Foods following the decline in its share price. 8

Total Return Index (TRI) PSG Group Companies ’ TRI vs. JSE All Share ’ s TRI* 60.0% 52.6% 48.5% 50.0% 44.8% 40.0% 32.6% 30.0% 20.0% 14.3% 13.8% 13.4% 12.7% 12.5% 8.2% 10.0% 0.0% PSG** PSG Konsult Curro*** Zeder Capitec 17 Nov 1995 11 Apr 2005 1 Jun 2009 1 Dec 2006 18 Feb 2002 Company TRI* JSE All Share TRI* *Measured since the respective dates noted until 28 Feb 2019 **Capitec unbundling in November 2003 treated as a dividend ***Stadio unbundling in October 2017 treated as if Curro shareholders retained the Stadio shares 9

Benchmarking TRI measured in Rand TRI 28 Feb 2019 Ranking 28 Feb 2019 based on TRI Company 1 year* 3 year* 5 year* Company 1 year 3 year 5 year PSG Group 21% 16% 25% PSG Group 3 3 2 Capitec 59% 42% 50% Capitec 1 1 1 Curro (33%) (12%) 4% Curro 5 6 5 PSG Konsult 25% 18% 18% PSG Konsult 2 2 3 Zeder (33%) (6%) 2% Zeder 6 5 6 Pioneer Foods (38%) (13%) 1% Pioneer Foods 7 7 7 JSE Alsi (1%) 7% 7% JSE Alsi 4 4 4 *CAGR 10

Benchmarking TRI measured in US Dollars TRI 28 Feb 2019 Ranking 28 Feb 2019 based on TRI Company 1 year* 3 year* 5 year* Company 1 year 3 year 5 year PSG Group 2% 21% 20% PSG Group 3 3 2 Capitec 6% 40% 43% Capitec 1 1 1 Curro (44%) (9%) 0% Curro 5 6 5 PSG Konsult 5% 23% 6% PSG Konsult 2 2 3 Zeder (44%) (3%) (11%) Zeder 6 5 7 Pioneer Foods (48%) (10%) (4%) Pioneer Foods 7 7 6 MSCI EM (10%) 15% 2% MSCI EM 4 4 4 *CAGR 11

Key financial metrics Headline earnings (Rm) Headline earnings per share (cents) ↑18.6% ↑18.6% 4,577 6,000 5,000 5,292 3,858 4,461 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 - - 2016 2017 2018 2019 2016 2017 2018 2019 Net transaction fee income (Rm) Return on equity 28% 6,464 7,000 28% 6,000 5,127 5,000 27% 27% 4,000 3,000 26% 2,000 1,000 - 25% 2016 2017 2018 2019 2016 2017 2018 2019 13

Key operational metrics 12.0 11.41 Banking client market share Active clients (m) 35% 6,000 9.90 5,250 10.0 8.60 30% 5,000 4,457 32% 8.0 7.30 3,845 25% 27% 6.30 4,000 3,274 10.14 6.0 24% 20% 8.50 2,682 7.10 3,000 20% 5.90 15% 4.0 17% 5.10 2,000 10% 2.0 1,000 5% 1.50 1.40 1.40 1.27 1.20 0.0 0% - Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Credit clients Transact and savings clients Capitec share of employed population Banking clients (000) › 500,000 new clients in Jan - Feb 19 › Self-service transactions volumes increased: • › 5.2m digital clients (↑ 18%) 343m banking app transactions (↑75%) • • 2.2m App users (↑ 47%) 640m USSD transactions (↑14%) • • 4.1m USSD users (↑ 12%) 18m self- service terminal transactions (↑111%) • 29m dual- note recycle transactions (↑55%) 14

Banking – future Growth opportunity in middle to higher income segment Publisher Audience Measure Survey (PAMS)* Question: Which one bank do you regard as your main bank? Capitec Bank Total Banked Monthly Personal Income # Clients (‘000) Population (‘000) Market Share Other 271 902 30% R0 - R4 999 6,887 17,410 40% R5 000 - R9 999 1,321 4,319 31% R10 000 - R19 999 620 3,330 19% >R20 000 71 1,270 6% Grand Total 9,170 27,231 34% *Publisher Audience Measure Survey replaced All Media and Products Survey 15

Credit Focus on higher income market (loans granted) Rm 32% 8,000 100% 7,000 90% 22.0% 23.9% 26% 26% 28.6% 33.0% 80% 40.3% 40.9% 6,000 47.6% 20% 70% 5,000 18% 17% 17% 60% 40.5% 40.1% 4,000 40.5% 14% 50% 39.7% 3,000 10% 38.6% 40% 38.0% 9% 34.0% 2,000 30% 6% 4% 20% 37.5% 36.0% 1,000 30.9% 27.4% 21.1% 21.2% 10% 18.4% - 0% 1 -6 months 7-12 months 13-36 37-48 49-60 61-84 2016 Aug 16 2017 Aug 17 2018 Aug 18 2019 months months months months <R10,000 R10,000 - R20,000 >R20,000 2016 2017 2018 2019 › Average interest rate down from 25.3% to 24.0% › 56% of sales over shorter period or at lower value than max (Feb 2018: 45%) › Credit card best rate at prime • 57% sold at less than 16% interest rate 16

Credit Loan book breakdown (Rm) 1 Mar 2018 28 Feb 2019 Difference Up-to-date book 37,165 41,587 12% Up-to-date significant increase in credit risk (SICR) 4,401 3,765 (14%) Up to 3 months in arrears 2,700 2,476 (8%) Up-to-date that rescheduled from up-to-date (not yet 1,085 856 (21%) rehabilitated) Up-to-date that rescheduled from arrears (not yet 1,277 1,272 (0%) rehabilitated) More than 3 months in arrears and legal status 108 4,923 >100% Expected recoveries receivable 906 - n/a Total gross loans and advances 47,642 54,879 15% 17